0.3.0.0 VSS bug in VOLUME NOT DISK version

[magic-man]

My system:
HP DV2270US Quad Core. Windows 7 64-bit with 8 Gigs RAM.
Drive 0: OCZ Vertex LE SSD with 1 hidden partition (100 Meg) and 1 Windows Partition (NTFS Drive C:)
Drive 1: Seagate 500G spinner. (1 partition, Drive E: NTFS)

The issue is reproducable at will and only affects the FancyCache VOLUME, not DISK (which seems to be performing better)...
Set up the software to cache drives C: and E.
Do a backup with Windows 7 backup (image) from C: to E:.
VSS errors out with the following errors:
Event ID 28, volsnap: The shadow copy of volume C: could not be created due to a failure in creating the necessary on disk structures.
Event ID 55, Ntfs: The file system structure on the disk is corrupt and unusable. Please run the chkdsk utility on the volume Win7-64 Ultimate.
Event ID 4100, Windows Backup: Backup did not complete successfully because a shadow copy could not be created. Free up disk space on the drive that you are backing up by deleting unnecessary files and then try again.
Event ID 12289, VSS: Volume Shadow Copy Service error: Unexpected error DeviceIoControl(\\?\Volume{4ad3c870-d0cd-11de-b16b-806e6f6e6963} - 000000000000018C,0x0053c008,00000000001BC0D0,0,00000000001BD0E0,4096,[0]). hr = 0x80070057, The parameter is incorrect.
Operation:
Processing EndPrepareSnapshots
Context:
Execution Context: System Provider
Event ID 12298, VSS: Volume Shadow Copy Service error: Unexpected error DeviceIoControl(\\?\Volume{4ad3c870-d0cd-11de-b16b-806e6f6e6963} - 0000000000000100,0x0053c008,00000000001BD0E0,0,00000000001BC0D0,4096,[0]). hr = 0x80070057, The parameter is incorrect.
Operation:
Processing EndPrepareSnapshots
Context:
Execution Context: System Provider

The fix: You have to turn off the disk cache on the E: partition, then reboot (the VSS hook does not clear until you reboot).

This bug also affects VSS in diskeeper too.

The bug does NOT exist in the DISK version. I have switched to the DISK version for now.
AND... for some reason the DISK one seems to perform a bit better for my use.

[Support]

Hi magic-man,

Thank you for your bug report.
We'll check this issue soon.